Mumbai: Mirae Asset Mutual Fund has announced the launch of a new sector-focused exchange-traded fund (ETF) targeting India’s defence industry. The new fund offer (NFO) for the Mirae Asset BSE India Defence ETF will open on February 2, 2026, and close on February 10, 2026.
The scheme will reopen for continuous buying and selling on stock exchanges from February 16, 2026, subject to listing approvals. With this launch, Mirae Asset expands its passive product lineup by introducing a thematic ETF that provides investors with direct exposure to defence-related companies.
Passive Strategy Linked to Defence Index
The Mirae Asset BSE India Defence ETF is an open-ended passive fund designed to track the BSE India Defence Total Return Index (TRI). As a passive ETF, the fund will not actively select stocks or attempt to outperform the market. Instead, it will replicate the composition of the index as closely as possible, subject to tracking error.
This means the portfolio will consist of defence-sector companies that are part of the BSE India Defence Index, held broadly in the same weightage as the index. The investment objective is to generate returns that closely match the performance of the underlying index, before expenses.
The fund house has clarified that the scheme does not provide any return guarantee, and the actual performance will depend entirely on market movements in the defence sector.
Defence Sector in Focus
India’s defence sector has gained strong attention in recent years due to rising government spending, policy support for domestic manufacturing, and increasing exports under initiatives such as Make in India and Atmanirbhar Bharat. Listed companies involved in defence equipment, aerospace, and military manufacturing have seen growing investor interest.
The Mirae Asset BSE India Defence ETF offers investors a structured way to participate in this theme without the need to pick individual defence stocks.
Key Details of the NFO
| Particulars | Details |
|---|---|
| Scheme Name | Mirae Asset BSE India Defence ETF |
| NFO Period | February 2 to February 10, 2026 |
| Trading Starts | February 16, 2026 |
| Benchmark Index | BSE India Defence TRI |
| Minimum Investment | ₹5,000 |
| Fund Managers | Ekta Gala, Akshay Udeshi |
| Investment Style | Passive ETF |
| Listing | NSE and BSE |
The table above summarises the main features of the Mirae Asset BSE India Defence ETF, helping investors quickly understand the structure of the new offering.
Asset Allocation and Liquidity
Under normal conditions, the scheme plans to invest 95% to 100% of its assets in equity shares of companies included in the BSE India Defence Index. Up to 5% may be invested in debt and money market instruments for liquidity purposes.
These may include treasury bills, short-term government securities, commercial papers, certificates of deposit, call money, and tri-party repos, within regulatory limits.
Units of the Mirae Asset BSE India Defence ETF will be listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). Investors can buy and sell units during normal market hours, similar to equity shares. There is no exit load for investors trading on the exchange.
Conclusion
The launch of the Mirae Asset BSE India Defence ETF gives Indian investors a focused and transparent way to gain exposure to the country’s defence growth story through a passive investment vehicle. However, since it is a sector-specific product, it carries higher concentration risk compared to diversified index funds. Investors should evaluate their risk profile and investment horizon before subscribing.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should consult a certified financial advisor before making any investment decisions.